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Best way to buy Ethereum from Australia – Forbes Advisor Australia

Bitcoin is the top cryptocurrency based on the value of the coins in circulation, but Ethereum is also popular among crypto investors. This is the second major form of cryptocurrency, with support from business leaders such as US billionaire entrepreneurs and television personality Mark Cuban.

If you invest $ 1000 in Ethereum in August 2015, that investment is worth $ 2.23 million almost six years later.

Nonetheless, it fell significantly in 2022, alongside other cryptocurrencies, down more than 70% from last year’s all-time high. Even in June alone Ether has fallen 45 percent.

If you decide to buy Ethereum, please proceed with extreme caution. As revealed on the federal Moneysmart website, Cryptography is volatile It is an asset and is not regulated by the Australian Securities and Investment Commission (ASIC).

If you still want to buy, we’ll show you how to start buying Ethereum, the official name of the token, more commonly called Ethereum, due to its relevance to the Ethereum platform.

Buy Ethereum

Investing in Ethereum may be easier than you think. Here’s how to get started in five steps:

1. Determine the level of risk

You can’t get around it-buying Ethereum is gambling.All investments carry the risks associated with them, but cryptocurrencies Especially vulnerable For price fluctuations. Think about the impact of hundreds of characters on cryptocurrency pricing. For example, when Tesla boss Elon Musk tweeted last year that his company wouldn’t accept Bitcoin as a payment, the value of the coin fell by 15%.

Ether has done some remarkable work in the past, but sometimes in a surprisingly short amount of time, with some serious crashes. In particular, it fell by more than 50% from a high of over $ 5,000 per coin in May 2021 to less than $ 2,500 a month later. This is a fairly extreme volatility.

Therefore, it is important to consider risk tolerance as well as the diversity and stability of the remaining investment portfolio before purchasing Ether. Experts are advised not to invest in crypto more than they can afford to lose.

2. Select crypto exchange

Buying Ether is more complicated than buying stocks or collective investment funds through a securities account. Cryptocurrencies are not traded on major exchanges like London and New York, and many brokerage firms do not offer crypto investments.

To purchase crypto, you must first create an account on the crypto exchange. In fact, it’s like an intermediary platform you might know better: Cryptocurrency exchanges fiat currencies (such as pounds and dollars) for buyers and sellers for cryptocurrencies like Ethereum. Allows you to Bitcoin Also Dogecoin..

If you haven’t thought about cryptocurrency yet, take a look at the list of the best cryptocurrency exchanges to find the one that works best for you. The trading platform of some exchanges can be complicated, but most exchanges offer a simple buying interface for beginners, but may cost more than the main trading platform.

Some of the important points: When choosing an exchange, make sure you are offering a crypto wallet to store your investment. The majority do, but if you don’t, you’ll need to get your own.

You can buy cryptos on platforms such as Paypal, but you can use one of these simplified platforms to trade cryptos only within the platform you purchased. Therefore, you will need to withdraw cash from that platform, then repurchase it with a crypto exchange and store it in another wallet.

3. Fund your account

Before you can buy Ethereum through crypto exchange, you need to fund your account. In most cases, you will deposit money from a bank account such as a checking deposit. You can also usually use a debit card or deposit money from your payment provider.

Some providers may allow you to use your card to buy ciphers, but be aware of the charges that can be added to the cost of your transaction.

4. Buy Ethereum

Investors purchasing stocks, collective / pool funds, or exchange-traded funds are limited by business hours. For example, the Australian Stock Exchange (ASX) has standard trading hours from 10 am to 4 pm on weekdays. The behavior of cryptocurrencies such as Ethereum is very different. Since it is a decentralized currency, you can buy and sell it 24 hours a day.

To buy Ethereum, enter its ticker symbol – ETH – in the Exchange’s Buy field and enter the amount you want to buy. If you don’t want to buy the entire Ethereum token, or if you don’t have enough money to put full coins in your account, you can buy a fraction. For example, if Ethereum is priced at $ 2000 and your investment is $ 100, you will buy 5% of Ethereum coins.

5. Save Ethereum

After the Ethereum purchase is processed, you need to save the cryptocurrency. Some platforms save it, but some people choose to save their investment themselves to reduce the chance of losing cryptography due to hacking.

This is understandable, but it’s also important to note that most major exchanges guarantee client ownership and often store most of their assets offline to prevent large-scale theft. In addition, historically hacked exchanges have reimbursed losses.

However, if you want the peace of mind that surrounds crypto, you can choose to move to one of two third-party wallets:

  • Hot wallet: The hot wallet is connected to the internet and can be accessed from your computer or smartphone. They are convenient and are usually offered by cryptocurrency exchange platforms at no additional cost, but if you want to turn off cryptocurrency from the exchange, you can also use your own. However, because you are still connected to the Internet, you are at increased risk of security breaches.
  • Cold wallet: On the other hand, a cold wallet is an external device that is completely disconnected from the Internet. Depending on the type you choose, it’s usually between $ 50 and $ 150, but there are even more expensive versions. Cold wallets are less convenient than hot wallets (you have to manually connect to the internet every time you access the crypto), but they are more secure and make sense if you own a large amount of Ethereum or other cryptocurrencies. It’s good.

Sale of Ethereum

To sell Ethereum, simply return to the cryptocurrency exchange and enter the amount you want to sell.

However, if you sell a significant amount of crypto, it is advisable to consult a tax expert. Despite its decentralized nature, profits from the sale of crypto are subject to capital gains tax under Australian law.

Need to buy Ethereum?

Ethereum is very popular and investors now have over 116 billion coins in their hands. But just because it’s one of the most well-known cryptocurrencies doesn’t mean it’s right for you. Only you can decide it (in consultation with your financial adviser).

In any case, before buying a volatile investment like Ether, you need to complete the investigation and make sure your finances are in good shape. Ideally, you should have a large “rainy day” fund, be exposed to minimal debt, and keep your old-age pension arrangements in good shape. Even if you can check all these boxes, it is important to diversify your portfolio, so only a small portion of your investment should be invested in Ethereum or other cryptocurrencies.

Also be aware of malicious persons in the crypto space. As the Australian Competition & Consumer Commission (ACCC) of the Federal Government points out, Australians lost Between January 1st and May 1st, 2022, more than $ 205 million of scams occurred, of which $ 113 million was related to cryptocurrencies. The ACCC warns that cryptocurrencies are also the most common payment method for investment fraud.

This article does not endorse any particular cryptocurrency, broker, or exchange, nor does it constitute a recommendation for cryptocurrencies as an investment class.

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